Nikkei Heads for Weekly Losses as Risk Aversion Grows Due to Middle East War

Japan's Nikkei index fell on Friday, heading for losses for a fourth consecutive week, as fading hopes for an imminent ceasefire in the US-Israeli war against Iran dampened market optimism and pushed investors to avoid risk.

The Nikkei dropped 1.6% to 52,740.09 points by 00:35 GMT, losing 1.3% for the week. The broader TOPIX index fell 0.8% to 3,614.20 points.

US President Donald Trump said he would extend the deadline before launching attacks on Iranian energy facilities by 10 days after what he described as a request from Tehran, adding that talks with Iran were going "very well".

However, an Iranian official rejected Washington's proposal for ending the conflict, describing it as "one-sided and unfair", casting a shadow over prospects for de-escalation.

Among stocks traded on the Nikkei, 90 advanced and 134 declined.